Kenya to Launch Digital Marine Cargo Insurance System in July 2025, Enforcing Local Insurance for All Imports
Starting July 2025, Kenya is set to launch a groundbreaking digital marine cargo insurance system that will transform how importers secure mandatory insurance for their shipments. This system builds on the government’s enforcement from February 2025 requiring all imports into Kenya to be covered by locally issued marine cargo insurance. The digital platform will streamline compliance, enhance transparency, and significantly boost the local insurance industry while ensuring smoother customs clearance.
🔑 Key Takeaways
- Digital marine cargo insurance system launches July 2025 in Kenya
- All imports must have locally issued marine cargo insurance since February 2025
- System integrates with KRA’s customs clearance process
- Multiple digital access points including M-PESA Super App
- Fully paperless process reducing delays and fraud risks
- Significant boost expected for local insurance industry
📋 Table of Contents
- Background: Why Local Marine Cargo Insurance Is Now Mandatory
- What Is the Digital Marine Cargo Insurance System?
- How the Digital System Works: Step-by-Step
- Benefits of the Digital Marine Cargo Insurance System
- Challenges and Considerations
- Impact on Kenya’s Insurance Sector
- What Importers Need to Know and Do
- Looking Ahead: A Digital Future for Kenya’s Trade and Insurance
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Join WhatsApp Group 📱Background: Why Local Marine Cargo Insurance Is Now Mandatory
The journey to this digital transformation began with the Finance Act of 2017, which amended the Marine Insurance Act (CAP 390) to mandate that all marine cargo imports must be insured by locally licensed insurers. This move was designed to:
- Retain billions of Kenyan shillings in marine insurance premiums within the country rather than losing them to foreign insurers
- Strengthen the local insurance sector, increasing its capacity and competitiveness
- Ensure full compliance with customs regulations by linking insurance coverage to clearance processes
Despite the law being in place since 2017, enforcement only began in February 2025, requiring importers to procure local marine cargo insurance before customs clearance. The new digital system launching in July 2025 will make this process seamless, efficient, and fully integrated with customs and insurance regulatory authorities.
What Is the Digital Marine Cargo Insurance System?
This new system is a fully digital platform that allows importers and clearing agents to purchase marine cargo insurance certificates online, issue them digitally, and submit them directly to the Kenya Revenue Authority (KRA) for customs clearance. It integrates multiple stakeholders including:
- Insurance Regulatory Authority (IRA)
- Kenya Revenue Authority (KRA)
- Local insurance underwriters
- Clearing agents and importers
The system is accessible via multiple digital channels, including:
- The Coral Mini App on the popular M-PESA Super App
- Web portals hosted by insurance companies
- The Kentrade Single Window Portal
- Mobile apps of insurance underwriters
This multi-platform approach ensures convenience and accessibility for all importers, regardless of size or location.
How the Digital System Works: Step-by-Step
| Step | Action | Description |
|---|---|---|
1 |
Access the Import Declaration Form (IDF) | Importers or clearing agents log into any approved digital platform and retrieve the IDF using a unique number. The IDF contains critical shipment details needed for insurance. |
2 |
Complete the Digital Marine Cargo Insurance Certificate | Using the IDF data, importers fill in the insurance application form online, specifying coverage details. |
3 |
Pay the Insurance Premium | Premiums are paid digitally through integrated payment systems, including mobile money platforms. |
4 |
Submit the Certificate Electronically | Once issued, the digital insurance certificate is automatically forwarded to the IRA’s electronic platform and shared with KRA’s Integrated Customs Management System (ICMS). |
5 |
Customs Clearance | KRA verifies the insurance certificate before releasing the goods, ensuring compliance. |
This fully digital, paperless process eliminates delays, reduces fraud risks, and enhances transparency.
Related Marine Insurance Resources
| Resource | Description |
|---|---|
| 🚢Rising Imports & Marine Insurance | Learn how increasing imports are driving demand for marine insurance in Kenya |
| 💰Best & Cheapest Marine Insurance | Find the most affordable marine insurance options in Kenya |
| 📋February 2025 Marine Insurance Requirements | Complete guide to locally issued marine cargo insurance requirements |
| 📞Contact Us | Get in touch for consultation and support |
| 📝Get a Quote | Request a personalized marine insurance quote |
Benefits of the Digital Marine Cargo Insurance System
| Stakeholder | Benefits |
|---|---|
| For Importers |
• Faster customs clearance due to instant verification of insurance certificates • Multiple digital access points making it easy to purchase insurance anytime, anywhere • Reduced paperwork and simplified compliance procedures |
| For the Local Insurance Industry |
• Significant market expansion as all importers must now buy local marine insurance • Increased premiums and revenue, boosting insurer profitability and government tax income • Encouragement of innovation as insurers develop user-friendly digital platforms and APIs • Job creation in insurance, IT, and related sectors |
| For Government and Economy |
• Retention of billions in marine insurance premiums within Kenya’s economy • Improved regulatory oversight and fraud prevention through digital tracking • Enhanced trade facilitation supporting economic growth and investor confidence • Strengthened financial sector resilience with a robust local insurance market |
Challenges and Considerations
While the digital system promises many advantages, certain challenges need addressing:
Technical Integration
Ensuring seamless connectivity between IRA, KRA, insurers, and payment platforms requires robust IT infrastructure and APIs.
Cybersecurity Risks
Digital data exchange and payments increase vulnerability to cyberattacks, necessitating strong security protocols.
Cost Implications
The introduction of multiple charges at different points in the insurance chain may increase overall marine insurance costs.
Single Payment Mode
Handling large premium volumes via one payment channel could pose operational challenges.
Digital Literacy
Smaller importers may require training to navigate digital platforms effectively, avoiding clearance delays.
Staff Training
Insurance companies must train employees on new procedures and systems to ensure smooth implementation.
Impact on Kenya’s Insurance Sector
The digital marine cargo insurance system is expected to transform Kenya’s insurance landscape by:
- Boosting local insurers’ market share dramatically as importers shift from foreign to local coverage
- Driving digital transformation within insurance companies, fostering customer-centric innovation
- Creating new employment opportunities in insurance underwriting, IT, and customer support
- Enhancing sector resilience by expanding the insurance pool and premium base
- Increasing government revenue through higher taxable income from insurance premiums
What Importers Need to Know and Do
Compliance is mandatory
Importers must obtain local marine cargo insurance digitally before customs clearance or risk shipment delays.
Use approved platforms
Access insurance certificates via the Coral Mini App on M-PESA, Kentrade portal, or insurer apps/websites.
Prepare for digital transition
Importers and clearing agents should familiarize themselves with the new process and platforms.
Stay informed
Regular updates from the Insurance Regulatory Authority and Kenya Revenue Authority will guide importers through the transition.
Looking Ahead: A Digital Future for Kenya’s Trade and Insurance
The launch of Kenya’s digital marine cargo insurance system in July 2025 marks a milestone in the country’s trade facilitation and insurance sector modernization. By mandating local insurance and digitizing the process, Kenya is not only protecting its economy but also setting a precedent for other African countries.
This initiative will drive efficiency, transparency, and financial inclusion, ultimately contributing to stronger economic growth and a more resilient insurance market. Importers, insurers, and regulators alike stand to benefit from this innovative approach to managing marine cargo risks in the digital age.
In conclusion, Kenya’s new digital marine cargo insurance system is a game-changer that will enhance compliance, boost the local insurance industry, and facilitate smoother trade operations. Importers and stakeholders should embrace this digital shift to capitalize on the benefits and ensure seamless import processes moving forward.
This article is based on the latest updates from the Insurance Regulatory Authority, Kenya Revenue Authority, and industry experts as of June 2025.
